Recent Mortgage Rule Changes = Increase Costs For You

You may have thought that the mortgage rule changes from Ottawa only affect first time home buyers which is understandable because the media sucks at providing the public with the real story.
Yes, prospective home buyers qualify for 20% less now than they did prior to October but, the majority of the rule changes have indirectly and directly affected mortgage competition. This is all due to increased costs to the mortgage insurers (CMHC) which is handed off to the lenders which (as you might have guessed) is handed down to you, the consumer.
Now, you may be thinking 'but Ian, I already have a mortgage and my rate is set, so why do I care?'. Well, when you need to renew your mortgage in 5 years or whenever your term is due, your lender's new rate offering is going to be higher because of these changes. Of course, I'll help you find a better rate option at that time but, with reduced competition in the mortgage market, you're options could be slim. You may even want to consider refinancing your home at that time to pay for renos or pay off a higher interest car loan but, those options will be limited. Again, fewer options, means less competition and less competition means we all pay more.
What can you do about it? First, do your homework. Learn a little more about it and then, let your local MP know what you really think. Mortgage Professionals Canada understands what this means for the mortgage industry and more importantly, what this means for mortgage consumers. So, they've created a website that makes it easy for you to send a letter to your local Member of Parliament. The more feedback they get, the greater the chances we'll see positive changes that actually help Canadians rather than take money from our pockets.
Click the link below to make your voice heard.

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